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AllAdvantage
was the first and for a while at least the BEST of the Viewbar
programs. It was launched in March 1999, with predictions
that membership would rise to around 30,000 by June. The
interest was truly unprecedented and 10 days after launch,
membership had exploded to a quarter of a million, moving
up to 650,000 by the end of April, even though the viewbar
program itself had yet to be released.
The viewbar itself was released on a first come, first
served basis in May, but initially there were some teething
difficulties, including spam and lost referrals. The program
was already a runaway success, but clearly a money hungry
Internet community was ready to abuse it.
GoToWorld
and Utopiad, AA's first competitors, appeared with their
programs in June 1999, and ePIPO soon followed.
AA continued to have difficulties and announced that
the maximum number of hours which would be paid for during
July was 10. A shocked membership complained that all the
hype had suggested that they would be paid for 40 hours.
Obviously, even at this early stage, there was some doubt
about the sustainability of the model. August saw a welcome
increase in maximum hours to 15, and membershiip continued
to race away to 2 million, seduced by the promise of free
money. The viewbar was by now widely available, but early
users started complaining about it causing problems with
their PC's. The AA website was ranked 48th most visited
in PCData rankings, rising to 23 in August.
Throughout the rest of 1999 and the first part of 2000,
things continued in much the same way - memership knew no
bounds, AA started paying out earnings as promised, but
there was continued pressure on maximum hours coverage and
payment rates as the financial model was proven to be seriously
over optimistic. The advertising revenues were never enough
to generate sufficient profits and the only way to cope
was to cut back on payments to members.
They also tried to persuade members (even conning them)
to switch from the Viewbar scheme to instead participating
in Sweepstakes, but they weren't conning anyone ad whatever
they tried just didn't me any difference at all. Their fortunes
dipped lower and lower, until at last the news came, with
the following article in InternetNews on February 1 2001:
Ad-sponsored surfing program AllAdvantage
has given up on trying to make money by paying people to
look at banner ads as they browse the Web.
"We are sad to report that the major
changes in the marketplace that occurred during the last
year now require that we close the AllAdvantage Viewbar
[a window that displayed banner ads while users surfed]
and our pay-to-surf, sweepstakes and other incentive programs,"
states a message on the AllAdvantage Web site.
"The advertising and capital markets
have changed so fundamentally that it is now impossible
to continue our infomediary incentive programs and benefits,
including the Viewbar software."
Spokespeople
from liquidation firm DoveBid confirmed that it plans to
auction off at least some of AllAdvantage's assets -- including
servers and office furniture -- later this month.
It isn't known whether the Hayward,
Calif.-based firm is fully out of business, although the
voicemail of chief executive officer Jim Jorgensen was disabled,
as was that of AllAdvantage's public relations staff. Calls
left in a general mailbox were not returned by press time,
and a previously posted number for technical questions was
out of service.
The company's corporate information
was also disabled on the site, although it did provide instructions
for uninstalling its "Viewbar," and said in the front-page
message that it would not sell, lease, or distribute user
information to third parties.
The company, which launched in 1999,
went through a number of changes in its business model,
each time prompting speculations about its viability. A
tendency toward secrecy and reluctance to answer press inquires
didn't help stem rumors that AllAdvantage was in trouble.
After all, AllAdvantage.com earned
most of its revenues from banner ads on its Viewbar, and
the problems facing online advertising especially impacted
the pay-to-surf players, for which member payments were
often their single greatest expense.
Following a pulled IPO in June, AllAdvantage
was forced to retool its payment model several times, first
reducing the maximum cash it paid users, and then offering
sweepstakes entries as an alternative to cash -- each time
raising member ire.
Rumors only increased when a similarly
positioned firm, Los Angeles-based mValue, shuttered its
doors permanently in October, after having tweaked its own
payment system several times.
The company also came under heat
from members who alleged that it was often late in paying,
although it publicly denied any culpability. Many members
also claimed that the firm routinely invalidated certain
legitimate users' accounts on the pretense of fraud, to
avoid payout. This too, the company denied.
In September, AllAdvantage began
to give signs that it was moving into what would become
one of its new business areas, striking a technology licensing
deal in Japan. But technology apparently didn't pan out
as a viable business for the firm -- it never confirmed
whether it had landed any clients other than the one it
has in Japan, which is actually a joint venture between
itself and a major investor, Softbank.
It is not known whether the joint
venture, AllAdvantage Japan, will continue; calls to Softbank
were not returned by press time.
In
November, AllAdvantage quietly cut 35 percent of its staff
-- about 150 staffers -- and said it would begin revamping
itself into a B2B play. According to that new plan, AllAdvantage
would focus most of its energies on becoming a database
management application service provider and a specialty
ad rep firm to sell banner space in applications. A spokesman
envisioned it working for marketing technology companies
in the area -- like Radiate, EverAd, and Conducent --- but
did not comment on whether it was in talks with any players.
AllAdvantage also flirted with charging
for software distribution -- a deal with outsourced technology
vendor MyCIO.com began the firm distributing antivirus software
to users, in return for a slight fee.
And so, finally, one of the most interesting money making
programs disappeared with not a bang, but a sleazy whimper.
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